Facebook Falls as Report Fails to Quell Concerns Over Growth
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Facebook Inc. fell in late trading after its first earnings report as a public company showed a slower sales gain and narrower profit margins, failing to allay the concerns over growth that have sliced shares 29 percent.
Operating margin, excluding certain costs, was 43 percent in the second quarter, a decline from 53 percent a year earlier, amid a fourfold surge in sales and marketing expenses. Revenue rose 32 percent, the slowest pace on record, and payments-related sales were $192 million, below the $199.3 million average prediction from analysts surveyed by Bloomberg.